Nigeria. Africa’s largest economy said it will borrow an extra $2.5 billion in a Eurobond programme for the first quarter of this year.

The borrowing plan was announced by the Debt Management Office, DMO. It will be used to finance local debt such as treasury bills that will soon mature.

Shedding more lights on the debt programme, Patience Oniha, Director General of the DMO said:

“We are looking the issue probably first quarter depending on what the advisers say and subject to the market conditions.”

She said this particular tranche was part of the $5.5 billion borrowing plan approved last year. The government will look to use the loan to refinance over 2 trillion treasury bills that are fast piling up.

Nigeria’s is Africa’s largest economy by gross domestic product but its economy lags far behind South Africa and Egypt, two of the continents most developed economies with deep capital markets and infrastructure capital.

The country left a thorny recession late last year but things could go awry should the upward momentum in global crude oil price wane below its budget benchmark.